FRANKFURT Dec 8 The Portuguese government must
spend its money more efficiently to bring down its high public
debt and meet its obligations as bond yields rise, the European
Central Bank and the European Commission said on Thursday.
The two institutions had just completed their fifth
"surveillance mission" since Portugal left its bailout programme
"The very high level of public debt and the associated high
interest payments call for a clear consolidation strategy for
the short and medium term," they said.
"In particular, there is scope to enhance the efficiency of
public spending in Portugal."
They added: "The pursuit of prudent fiscal policy and
ambitious growth-enhancing reforms is key to improving
Portugal's potential growth and its resilience to shocks, in
particular amidst volatile sovereign yields and high financing
needs in the medium term."
(Reporting by Francesco Canepa; editing by Andrew Roche)